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AT&T's Net Income Rises,
But Falls Short of Estimates

By

John J. KellerStaff Reporter of The Wall Street Journal

Updated Jan. 23, 1997 12:01 a.m. ET

NEW YORK -- AT&T Corp., fresh from spinning off its equipment and computer businesses, posted a 12% increase in fourth-quarter net income before one-time charges a year ago, but the earnings lagged behind most analysts' estimates and revenue growth remained sluggish, indicating a tough year ahead.

AT&T all but forecast a significant drop in earnings for the first quarter, as lost share in the consumer long-distance market, higher capital spending and problems with uncollectible bills drag down results. These snags and...